DEVELOPER Halim Group was set to build a 93 metre tall tower on the site but their request for an 18 month extension was denied by planning minister Richard Wynne last week.
Source: AAP
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DEVELOPER Halim Group was set to build a 93 metre tall tower on the site but their request for an 18 month extension was denied by planning minister Richard Wynne last week.
Mr Guy described the redevelopment as a "cock-up" from the start and said developers should never have been granted a permit to knock it down.
"The building should stay as it is and should be heritage listed," Mr Guy told reporters on Saturday.
The hotel was to keep the facade in the revamp but without the permit extension, Halim Group spokesman Michael Smith says the hotel is no longer viable and will likely close in two years.
Mr Smith said claims by the government were "disingenuous" considering the permit was granted in 2010 and then was challenged at VCAT and the Supreme Court.
Not only did those challenges "gobble up time" but so did the years his company spent waiting for heritage permits and other formalities.
"For years this project has been used as a political football by both parties," Mr Smith told AAP.
"The owners will do some hard thinking. But it has been proven that other hotels of the same heritage including London's Savoy and Paris' Ritz can't survive without being modernised."
He said heating, plumbing and the roof of the building, among other features, needed to be completely overhauled. Without the redevelopment it could not continue as a five star hotel.
"We will look at all options," Mr Smith said.
The small size of rooms available at the hotel may mean it could be turned into student accommodation or a backpackers hostel.
The hotel has been a popular spot for weary celebrities to rest their heads:
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